Fincantieri S.p.a. · MIL:FCT
Fincantieri — Equita Engineering & Construction Conference 2018
28 slides from Fincantieri's conference presentation, April 2018
Slide 1: Update post FY 2017 Results
FINCANTIERI Update post FY 2017 Results April, 2018
Slide 2: Safe Harbor Statement
Safe Harbor Statement This Presentation contains certain forward-looking statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes," "expects," "predicts," "intends," "projects," "pl
Slide 3: Table of Contents
Table of Contents Section 1 Introduction Section 2 FY 2017 results and outlook Section 3 Appendix - Historical financial performance Carnival Vista Carnival Cruise Lines “ECO Notation” by Lloyd‘s Register for exceeding environmental standards
Slide 4: Introduction
Section 1 Introduction FREMM “Alpino” Italian Navy Best in class in terms of endurance
Slide 5: Fincantieri at a glance
Fincantieri at a glance #1 Western designer & shipbuilder(1) with 230 years of history & >7,000 ships built Norway • 5 shipyards 20 shipyards € 5,020 mln revenues 4 continents Romania China • 2 shipyards • 1 Joint Venture ~ € 26.1 bln total backlog(2) ~ 19,500 employees • € 22 bln backlog ~ 80,000 s
Slide 6: Business units, products and positioning
Business units, products and positioning End markets Main products Positioning Revenues 2017(4) Backlog(5) Cruise • All cruise ships • #1 worldwide (from contemporary to luxury) (~45% market share(1)) € 2,649 mln (49.2% on total) Naval • All surface vessels (also stealth) • Leader: • Support & Speci
Slide 7: Track record, clients and technological leadership
Track record, clients and technological leadership 1 Track record 2 Clients 3 Technological leadership Cruise (3) Ship deliveries • Carnival Vista: “ECO Notation” by Lloyd‘s • Twofold Register for exceeding environmental standards • 1990 – 2001 23 • Royal Princess: 1st cruise ship fully compliant in
Slide 8: FY 2017 results
Section 2 FY 2017 results Skandi Africa DOF Ship of the Year 2015
Slide 9: FY 2017 Key Messages
FY 2017 Key Messages • Results in line with Business Plan 2016-2020 targets • Record-high revenues, exceeding € 5 billion (+13% vs FY 2016), EBITDA at € 341 million (+28% vs FY 2016), Adjusted Net Profit(1) of € 91 million (+52% vs FY 2016) and Profit for the year at € 53 million (279% vs FY 2016) •
Slide 10: FY 2017 main orders (1/2)
FY 2017 main orders (1/2) Orders acquired in Q4 Vessel Client Delivery 4 cruise ships Norwegian Cruise Line 2022-2025 1 cruise ship Holland America Line 2021 (Carnival Corporation) 1 cruise ship Princess Cruises 2022 (sixth “Royal Princess” class vessel) (Carnival Corporation) 1 cruise ship Silverse
Slide 11: FY 2017 main orders (2/2)
FY 2017 main orders (2/2) Orders acquired in Q4 Vessel Client Delivery 1 krill fishing vessel Aker BioMarine 2018 1 live fish transportation vessel Fjordlaks Aqua 2018 1 research expedition vessel Rosellinis Four-10 2020 (wholly-owned by the industrialist Kjell Inge Røkke) 1 expedition cruise vessel
Slide 12: FY 2017 main deliveries (1/2)
FY 2017 main deliveries (1/2) Deliveries in Q4 Vessel Client Delivery Cruise ship “Viking Sky” Viking Ocean Cruises Ancona Cruise ship “Majestic Princess” Princess Cruises Monfalcone (Carnival Corporation) Cruise ship “Silver Muse” Silversea Cruises Sestri Ponente FREMM “Rizzo” Italian Navy Muggiano
Slide 13: FY 2017 main deliveries (2/2)
FY 2017 main deliveries (2/2) Deliveries in Q4 Vessel Client Delivery OSCV “Skandi Buzios” Techdof Vard Søviknes OSCV “Far Superior” Farstad Vard Vung Tau OSCV “Skandi Vinland” DOF Vard Langsten 2 Module Carrier Vessels Kazmortransflot Vard Braila Offshore 6 Module Carrier Vessels Topaz Energy and M
Slide 14: Overview of financial performance indicators
Overview of financial performance indicators(1) € mln FY 2015 FY 2016 FY 2017 Order intake 10,087 6,505 8,554 Total backlog 18,721 24,031 26,153 Of which backlog 15,721 18,231 22,053 Of which soft backlog 3,000 5,800 4,100 Revenues 4,183 4,429 5,020 EBITDA (26) 267 341 As a % of revenues -0.6% 6.0%
Slide 15: Order intake and backlog – by segment
Order intake and backlog – by segment Order intake Total backlog(1) € mln € mln 1.5x 1.7x 5.4x 5.2x 26,153 24,031 8,554 4,100 573 5,800 1,186 1,418 888 6,505 1,155 664 1,361 1,138 Backlog 22,053 Backlog 20,238 7,526 18,231 16,372 5,191 (488) (433) (657) (789) FY 2016 FY 2017 FY 2016 FY 2017 Shipbuil
Slide 16: Backlog deployment
Backlog deployment Shipbuilding Offshore # ships deliveries(1) # ships deliveries Cruise Naval(2) 2018 5 2018 7 2018 24 8 32 2019 4 2019 4 2019 4 11 15 2020 4 1 5 2020 4 2020 5 2021 2021 1 4 2021 4 1 5 1 2022 1 2 3 2022 5 2022 New orders in FY 2017 • Additional 4 units scheduled after 2022 • 26 vess
Slide 17: Revenues and EBITDA – by segment
Revenues and EBITDA(1) – by segment Breakdown by segment(2) EBITDA and EBITDA margin € mln € mln 6.0% 6.8% 5,020 4,429 558 495 341 943 22 11.5% 64 960 267 12 1,212 4.4% 42 12.5% 62 1,156 5.3% 51 3,883 3,246 269 2,649 6.9% 2,078 5.7% 185 (272) (364) (31) (34) FY 2016 FY 2017 FY 2016 FY 2017 Shipbuild
Slide 18: Net working capital and net debt
Net working capital and net debt(1) Breakdown by main components Comments € mln FY 2016 FY 2017 • Net working capital and net debt dynamics related to the production Inventories and advances to volumes in cruise and the cash-in of suppliers the final installments for delivered Work in progress net o
Slide 19: Appendix – Historical financial performance
Section 3 Appendix Historical financial performance
Slide 20: Financial performance
Financial performance Revenues(1) EBITDA / margins(2) € mln € mln 5,020 -0.6% 6.0% 6.8% 558 4,429 341 4,183 495 943 498 11.5% 64 22 267 960 42 4.4% 1,199 12 1,212 12.5% 62 23 1,156 51 5.3% 1,056 3,883 3,246 6.9% 269 2,652 2,649 2,078 5.7% 185 1,573 (26) 8.4% 42 (166) (272) (364) -1.3% (31) (34) (34)
Slide 21: Financial performance
Financial performance EBIT / margins Net result before extraordinary and non recurring items(1) € mln € mln 91 60 66 95 -3.3% 3.5% 4.4% (6) (4) (141) (111) (252) FY 2015 FY 2016 FY 2017 221 157 of which Group of which minority interests € mln Net result 53 14 (137) 25 57 (11) (4) (175) FY 2015 FY 20
Slide 22: Capex
Capex Capex evolution Capex by segment € mln € mln 3.8% 5.1% 3.2% 224 20 224 8 161 31 163 161 80 163 13 10 27 9 39 55 31 37 165 144 122 108 107 90 FY 2015 FY 2016 FY 2017 FY 2014 FY 2015 FY 2016 Shipbuilding Property, plant and equipment Intangible assets % of Revenues Offshore Equipment, Systems &
Slide 23: Net working capital
Net working capital(1) Breakdown by main components € mln FY 2015 FY 2016 FY 2017 405 Inventories and advances to suppliers 590 835 Work in progress net of 1,876 604 advances from customers 648 Trade receivables 1,123 909 560 Other current assets and liabilities 59 1 (196) Construction loans (678) (
Slide 24: Net financial position
Net financial position(1) Breakdown by main components € mln – Net cash / (Net debt) FY 2015 FY 2016 FY 2017 Non-current financial receivables Current financial receivables 113 123 53 115 35 33 260 220 274 Cash & cash equivalents Short term financial liabilities (263) (453) (482) Long term financial
Slide 25: Working capital dynamics
Working capital dynamics Indicative payment terms Main phases of the shipbuilding process(1) Impact on net working capital Signing A First Cut B Launch C Delivery D Design / Project Hull Assembly and Outfitting and Development Pre-Outfitting Sea Trials • Increases during construction Cruise Duration
Slide 26: Profit & Loss and Cash flow statement
Profit & Loss and Cash flow statement Profit & Loss statement (€ mln) FY 2015 FY 2016 FY 2017 Revenues 4,183 4,429 5,020 Materials, services and other costs (3,337) (3,291) (3,742) Personnel costs (865) (846) (909) (1) Provisions (7) (25) (28) EBITDA (26) 267 341 Depreciation, amortization and impai
Slide 27: Net result before extraordinary and non recurring items
Net result before extraordinary and non recurring items(1) Net result before extraordinary and non recurring items (€ mln) FY 2015 FY 2016 FY 2017 A Net result before extraordinary and non recurring items(1) (252) 60 91 Attributable to owners of the parent (141) 66 95 B Extraordinary and non recurri
Slide 28: Balance sheet
Balance sheet Balance sheet (€ mln) FY 2015 FY 2016 FY 2017 Intangible assets 518 595 582 Property, plant and equipment 974 1,064 1,045 Investments 62 58 53 Other non-current assets and liabilities (44) (69) 122 Employee benefits (57) (58) (59) Net fixed assets 1,453 1,590 1,743 Inventories and adva
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